Can You Get a Car Loan While on AISH in Edmonton?

Yes, you absolutely can. Getting a car loan while receiving Assured Income for the Severely Handicapped (AISH) in Edmonton is more common than you might think. Many lenders see AISH as a stable, consistent, and reliable source of income. Unlike a job where layoffs can happen, government-backed income is dependable, which is a major positive factor for finance approvals.

Having a reliable vehicle isn't a luxury; for many, it's essential for getting to medical appointments, grocery shopping, and maintaining independence. The key is understanding how to approach the process correctly.

How Lenders View Your AISH Income

When you apply for a car loan, lenders are mainly concerned with two things: your ability to make payments and your history of paying bills on time. AISH directly addresses the first concern.

• Stability: Your AISH payments arrive on the same day every month, without fail. This predictability is exactly what lenders want to see.
• Verifiable: Your income is easy to prove with official government statements, leaving no room for doubt.

While some traditional banks might not be as familiar with AISH as an income source, many specialized auto finance providers in and around Edmonton work with it every day. They know how to structure an application to highlight the reliability of your income, significantly improving your chances of approval.

Steps to Getting Approved for a Car Loan on AISH

Navigating the process is straightforward when you know what to expect. Here's a simple breakdown of the steps involved.

1. Figure Out Your Budget: Before you start looking at cars, look at your monthly AISH payments and other expenses. Decide on a comfortable car payment that won't stretch you too thin. Remember to account for insurance, fuel, and potential maintenance. A realistic budget is your strongest tool.
2. Check Your Credit Report: Your credit history still plays a role. You can get a free copy of your credit report from Equifax or TransUnion. Even if your credit isn't perfect, don't worry. The stability of your AISH income can often help offset a lower credit score.
3. Gather Your Documents: Being prepared makes everything smoother. You will typically need:
   • Proof of income (your official AISH statement)
   • A valid driver's licence or government-issued ID
   • Proof of address (like a utility bill)
   • Bank statements for the last few months
4. Get Pre-Approved: Getting pre-approved for a loan *before* you go car shopping gives you power. You'll know exactly how much you can spend, which helps you focus on vehicles that fit your budget. It also separates the financing process from the vehicle selection, reducing pressure at the dealership.

Will a Car Loan Affect My AISH Benefits?

This is a very important and valid concern. In Alberta, a vehicle is generally considered an 'exempt asset' under AISH rules, meaning it doesn't count against your asset limit, especially if it's necessary for your well-being and daily life. However, rules can be specific and are subject to change.

It is crucial to speak directly with your AISH case worker. They can give you the most accurate, up-to-date information based on your personal situation. Confirming with them ensures you have peace of mind and are following all the program's guidelines.

Using Your Car Loan to Build Credit

A car loan is more than just a way to get a vehicle; it's a powerful tool for building your financial future. When you're on a fixed income, having a strong credit score can open doors to better financial products down the road.

Every on-time payment you make on your car loan is reported to the credit bureaus (Equifax and TransUnion). Over time, this consistent payment history can significantly improve your credit score, creating more opportunities for you in the future.